The demand curve A indicates that

Match each of the terms to their definition or description.                                                             Cross-Price Elasticity                                                             Elasticity                                                             Income elasticity                                                             Price Elasticity of Demand A. the effect that a change in price of one good has on the quantity demanded of another good. B. responsiveness of quantity demand to a change in price C. a measure of responsiveness D. the effect that a change in income has on quantity demand for a good

Consider the supplier of a product that is an inferior good. For instance, an aluminum supplier for a canned goods producer. During a recession during which average incomes fall, which of the following best describes what would happen to the profit-maximizing price of the supplier? a. The supplier’s profit-maximizing price would decrease due to an increase in demand. b. The supplier’s profit-maximizing price would increase due to an increase in demand. c. The supplier’s profit-maximizing price would decrease due to a reduction in demand. d. The supplier’s profit-maximizing price would increase due to a reduction in demand.

Use the figure below to answer the following question 16 14 12 10 Price 9 Quantity 8. Figure 4.3.3 Figure 4.3.3 shows the market for a good. At the market equilibrium, demand for the good is and supply of the good is 1) elastic; perfectly inelastic 2) unit elastic; perfectly elastic 3) inelastic; perfectly elastic 4) unit elastic; unit elastic 5) elastic; perfectly elastic 6. 2.